Personal Service Corporations

Personal service corporations are subject to a flat tax of 35% regardless of their income.

Personal Holding Company

Personal holding companies are subject to an additional tax at 20% (15% in 2012, 2011 and 2010) on any undistributed personal holding company income. (Code Sec. 541)

Accumulated Earnings Tax

In addition to the regular tax, a corporation may be liable for an additional tax at 20% (15% in 2012, 2011, 2010) on accumulated taxable income in excess of $250,000 ($150,000 for personal service corporations). (Code Sec. 531)

Miscellaneous Business Data

Maximum Section 179 Expense Deduction

Note. The Sec. 179 deduction reverts by law to a maximum of $25,000 for taxable years beginning after 2014. (That's calendar year 2015 and subsequent years for most taxpayers.) The phaseout drops to $200,000. It's expected that the deduction and phaseout will be increased substantially with any tax law changes or an extender package.

Note. An increased Sec. 179 deduction is available to enterprise zone businesses and renewal community business in certain situations. In addition, an increased Sec. 179 deduction is available for certain Sec. 179 Disaster Assistance property. Check the rules in place at the time the property is placed in service. Finally, the maximum deduction for heavy sport utility vehicles and certain other vehicles is restricted to $25,000.

Lesser of 3.8% of net investment income from interest, dividends, annuities, royalties, rents, and gains not generated in active trade or business or modified adjusted gross income in excess of $200,000 ($250,000 for married filing joint; $125,000 for married filing separate).

Additional Medicare Tax on Wages and Self-Employment Income--2015

Additional tax of 0.9% on wages and self-employment income in excess of $200,000 ($250,000 for married joint; $125,000 married separate).

Persons Against Which a Federal Tax Lien is Not Valid--
Purchasers in a casual sale for less than $1,520 or a mechanic's lienor that repair or improved certain residential property if the contract price is not more than $7,590.

Health Savings Accounts--2015

Catch-up contributions for individuals 55 or older (but less than 65) is $1,000.

Contribution limit prorated for partial year (1/12 per month).

Deductible Amounts that define High Deductible Plan:

Annual Deductible Deductibles, Co-Payments and other Amounts
Not Less Than but not Premiums Not to Exceed
Self Only $1,300 $ 6,450
Family Coverage 2,600 12,900

Adoption Expenses--2015

Maximum credit for child with special needs--$13,400

Maximum credit, other adoptions--$13,400

Other adoptions, gross income exclusion, qualified expenses up to $13,400

Phaseout range, modified adjusted gross income--$201,010 to $241,010

Refundable Credit for Coverage Under a Qualified Health Plan--2015

Household income Limitation amount unmarried Limitation for all
(% of poverty line) (other than surviving spouses or HOH) other taxpayers
Less than 200% $300 $600
200% less than 300% $750 $1,500
300% less than 400% $1,250 $2,500

Eligible Long-Term Care Premiums--2015

Attained Age Before the Close of the Tax Year Limitation on Premiums
40 or less $ 380
More than 40 but not more than 50 710
More than 50 but not more than 60 1,430
More than 60 but not more than 70 3,800
More than 70 4,750

Lesser of 3.8% of net investment income from interest, dividends, annuities, royalties, rents, and gains not generated in active trade or business or modified adjusted gross income in excess of $200,000 ($250,000 for married filing joint; $125,000 for married filing separate).

Additional Medicare Tax on Wages and Self-Employment Income--2014

Additional tax of 0.9% on wages and self-employment income in excess of $200,000 ($250,000 for married joint; $125,000 married separate).

Persons Against Which a Federal Tax Lien is Not Valid--
Purchasers in a casual sale for less than $1,490 or a mechanic's lienor that repair or improved certain residential property if the contract price is not more than $7,470.

Health Savings Accounts--2014

Catch-up contributions for individuals 55 or older (but less than 65) is $1,000.

Contribution limit prorated for partial year (1/12 per month).

Deductible Amounts that define High Deductible Plan:

Annual Deductible Deductibles, Co-Payments and other Amounts
Not Less Than but not Premiums Not to Exceed
Self Only $1,250 $ 6,350
Family Coverage 2,500 12,700

Adoption Expenses--2014

Maximum credit for child with special needs--$13,190

Maximum credit, other adoptions--$13,190

Other adoptions, gross income exclusion, qualified expenses up to $13,190

Phaseout range, modified adjusted gross income--$197,880 to $237,880

Eligible Long-Term Care Premiums--2014

Attained Age Before the Close of the Tax Year Limitation on Premiums
40 or less $ 370
More than 40 but not more than 50 700
More than 50 but not more than 60 1,400
More than 60 but not more than 70 3,720
More than 70 4,660

Lesser of 3.8% of net investment income from interest, dividends, annuities, royalties, rents, and gains not generated in active trade or business or modified adjusted gross income in excess of $200,000 ($250,000 for married filing joint; $125,000 for married filing separate).

Additional Medicare Tax on Wages and Self-Employment Income--2013

Additional tax of 0.9% on wages and self-employment income in excess of $200,000 ($250,000 for married joint; $125,000 married separate).

Health Savings Accounts--2013

Catch-up contributions for individuals 55 or older (but less than 65) is $1,000 (pro rate for year).

Deductible Amounts that define High Deductible Plan:

Annual Deductible Deductibles, Co-Payments and other Amounts
Not Less Than but not Premiums Not to Exceed
Self Only $1,250 $ 6,250
Family Coverage 2,500 12,500

Adoption Expenses--2013

Maximum credit for child with special needs--$12,970

Maximum credit, other adoptions--$12,970

Other adoptions, gross income exclusion, qualified expenses up to $12,970

Phaseout range, modified adjusted gross income--$194,580 to $234,580

Eligible Long-Term Care Premiums--2013

Attained Age Before the Close of the Tax Year Limitation on Premiums
40 or less $ 360
More than 40 but not more than 50 680
More than 50 but not more than 60 1,360
More than 60 but not more than 70 3,640
More than 70 4,550

Persons Against Which a Federal Tax Lien is Not Valid--2013

Purchasers in a casual sale for less than $1,470 or a mechanic's lienor that repair or improved certain residential property if the contract price is not more than $7,350.

Health Savings Accounts--2012

Catch-up contributions for individuals 55 or older (but less than 65) is $1,000 (pro rate for year).

Deductible Amounts that define High Deductible Plan:

Annual Deductible Deductibles, Co-Payments and other Amounts
Not Less Than but not Premiums Not to Exceed
Self Only $1,200 $ 6,050
Family Coverage 2,400 12,100

Adoption Expenses--2012

Maximum credit for child with special needs--$12,650

Maximum credit, other adoptions--$12,650

Other adoptions, gross income exclusion, qualified expenses up to $12,650

Phaseout range, modified adjusted gross income--$189,710 to $229,710

Eligible Long-Term Care Premiums--2012

Attained Age Before the Close of the Tax Year Limitation on Premiums
40 or less $ 350
More than 40 but not more than 50 660
More than 50 but not more than 60 1,310
More than 60 but not more than 70 3,500
More than 70 4,370

Persons Against Which a Federal Tax Lien is Not Valid--2012

Purchasers in a casual sale for less than $1,430 or a mechanic's lienor that repair or improved certain residential property if the contract price is not more than $7,160.

Property Exempt from Levy--2012

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